Parsvnath Developers’ credit rating unaffected by shell listing: CRISIL
According to rating agency CRISIL credit rating of Parsvnath Developers long-term bank facilities will remain unaffected by the recent announcement pertaining to shell companies. CRISIL on August 16 had downgraded its rating to ‘D’ from ‘C’ earlier.
The rating agency said that the rating continues to reflect delays in debt servicing on account of stretched liquidity and exposure to cyclicality inherent in the real estate sector. “However, it benefits from the extensive experience of promoters in the real estate industry,” it said in a BSE filing by Parsvnath Developers.
Markets regulator Securities and Exchange Board of India (Sebi) earlier this month put Parsvnath Developers in the restricted trade category after it was identified as a shell company by the corporate affairs ministry.
The company then moved the Securities Appellate Tribunal (SAT), which stayed the trade restriction order by Sebi. However, the probe on the company is still on.
Parsvnath Developers has reported a standalone net loss of Rs 26.06 crore in the quarter ended June this year, compared with a profit of Rs 4.58 crore in the same period last year.